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Life and Health Insurance Producer Exam

Penalties (LA): practice questions

Our Life & Health Insurance bank has 7 questions on this topic. Here are 3 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Louisiana

Unless a specific penalty is provided elsewhere, what is the maximum criminal fine for a natural person who intentionally violates the Louisiana Insurance Code?

  1. $2,500, or up to six months in parish jail, or both
  2. $10,000, or up to five years' imprisonment, or both
  3. $25,000 per violation, with no possibility of imprisonment
  4. $50,000, or up to ten years' imprisonment, or both
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B. $10,000, or up to five years' imprisonment, or both — La. R.S. 22:13(A) (corporations face up to $50,000; Subsection B excludes the producer-licensing Subpart, R.S. 22:1541 et seq.).

Question 2 · Louisiana

A Louisiana producer intentionally keeps a client's premium, meaning to permanently deprive the client of it. Apart from license discipline, what crime is this?

  1. Simple insurance fraud, a misdemeanor
  2. Unauthorized use of a movable
  3. No crime; it is only a civil violation
  4. Theft under R.S. 14:67
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D. Theft under R.S. 14:67 — La. R.S. 22:1554(J) (unauthorized use of a movable applies when there is no intent to permanently deprive).

Question 3 · Louisiana

What is the maximum penalty in Louisiana for each act violating the commissioner's cease and desist order on unfair trade practices?

  1. $50,000 per act, up to $1,000,000 aggregate
  2. $25,000 per act, up to $250,000 aggregate
  3. $1,000 per act, up to $100,000 aggregate
  4. $10,000 per act, with no aggregate limit
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B. $25,000 per act, up to $250,000 aggregate — La. R.S. 22:1970(A)(1).

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